Econ Final Exam Review 4

150. In a market with a surplus, what happens to the quantity demanded as the price adjusts to reach equilibrium?

• Quantity demanded increases
• Quantity demanded decreases
• Quantity demanded remains constant
• Quantity demanded becomes zero

151. Which of the following is NOT a shifter of the demand curve?

• Consumer preferences
• Income of buyers
• Price of the good
• Number of buyers

152. If the price of oil barrels is $10 and there's a shortage, what will happen to the price and quantity as the market moves towards equilibrium?

• Price will rise, quantity will increase
• Price will fall, quantity will decrease
• Price will rise, quantity will decrease
• Price and quantity will both remain constant

153. What market condition is represented when the quantity demanded is greater than the quantity supplied?

• Equilibrium
• Surplus
• Shortage
• Stagnation

154. If a market is at equilibrium, which of the following is true:

• There are no wasteful trades.
• There are no trades.
• Gains from trade are minimized.
• Buyers are exploited.
• Both C and D are true.

155. Below is the market for soda in NYC. The equilibrium price was $2.50 but is now $3.00. What happened to the quantity supplied relative to Q1?

• It increased.
• It decreased.
• It stayed the same.
• Not enough info to determine.

156. Below is the market for soda in NYC. The equilibrium price was $2.50 but is now $3.00. What happened to the quantity demanded relative to Q1?

• It increased.
• It decreased.
• It stayed the same.
• Not enough info to determine.

157. Below is the market for soda in NYC. The equilibrium price was $2.50 but is now $3.00. Which of the following is true when the minimum price of soda is $3?

• There is a shortage of soda.
• There is a surplus of soda.
• The quantity supplied and quantity demanded of soda are the same. The market is at equilibrium.
• Not enough info to say for sure.

158. How does the law of demand relate to price changes?

• Consumers buy more when prices increase
• Consumers buy less when prices decrease
• Consumers buy more when prices decrease
• Price changes have no effect on consumer behavior

159. What is the main difference between microeconomics and macroeconomics?

• Microeconomics studies individuals, macroeconomics studies governments
• Microeconomics studies small businesses, macroeconomics studies large corporations
• Microeconomics studies individual economic units, macroeconomics studies the economy as a whole
• Microeconomics studies local economies, macroeconomics studies global economies